History For The Federal Taxes: Difference between revisions

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The 'payroll' tax applies at a fixed percentage of one's working income - no brackets. The employee, pay out 6.2% of your working income for Social Security (only up to $106,800 income) and sole.45% of it for Medicare (no limit). Together they take additional 7.65% of the income. There's no tax threshold (or tax free) amount of income in this system.

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People hate paying duty. Tax avoidance strategies are entirely legal and could be made good use of. Tax evasion, however, isn't. Make sure you know where the fine line is.

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